SAP WM – Warehouse Management primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, putaway and picking. SAP WM monitors receipt, storage and goods movement from all locations to a final customer.
- Inventory Accuracy: Statistically, a data entry person makes 1 error every 300 keystrokes. If Radio Frequency technologies is introduced, the number of errors drops to 1 in 3 million.
By providing real time visibility, inventory accuracy can be improved by 20% or more. SAP WM can totally eliminate the need for any physical inventory. - Reduce Operational Cost: Using Bar Code Scanning on wireless handheld scanners provides instant inventory visibility and availability to the customer service team as they are trying to meet their customers’ needs. The system has the most up to date availability information which will help improve fill rates. Since the SAP WM confirms picking and shipping against the Sales Order that the customer placed, the possibility of picking and shipping the wrong items is virtually eliminated.
- Improve Customer Satisfaction: SAP WM system will improve the efficiency of all warehouse functions from receiving, order picking, cycle counting, shipping, etc. Typically, SAP WM will triple the number of lines picked and increases Outbound shipments by 15%. Configured warehouse layout with travel routes optimized will direct and guide the warehouse personnel through their inventory put-away, picking and cycle counting activities in the most efficient way possible.
- Increase efficiency: A reduction in operating expenses of up to 35% is typically realized by warehouses using SAP WM. Inventory carrying costs can be reduced by as much as 27%.
As a summary;
SAP WM – warehouse management system cost justification includes both tangible and intangible benefits. Here are main benefits:
- Better inventory visibilty
- Faster order fulfillment
- Reduced warehouse labor costs
- Cost of physical inventories eliminated
- Lower shipping/freight costs
- Increased warehouse productivity and pick speed
- Reduced Shipping errors
- Improved control over RMA’s
- Optimization of your warehouse space